1.3 percent: IMF significantly increases forecast for the German economy

The International Monetary Fund (IMF) is setting its economic forecast for Germany and the global economy high. The IMF now expects German gross domestic product (GDP) to grow by 1.3 percent this year.

That is 0.6 percentage points more than forecast in July and is in line with the federal government's forecast. The IMF also raised its expectations for global economic performance slightly by 0.1 percentage points to 3.1 percent. The IMF also raised its expectations for the euro area by 0.2 percentage points to 1.1 percent despite the Iran war.

In the coming year, the IMF expects growth of 1.1 percent in the Federal Republic, which is an increase of 0.1 percentage points compared to the Monetary Fund's last outlook.

Two-part outlook for next year

The IMF now expects global economic growth to slow slightly less than previously expected as industrialized countries have shown resilience in the face of higher energy prices since the Iran war.

However, while many of these countries have benefited from increasing investments in artificial intelligence (AI), poorer countries that do not benefit from this boom are faced with difficult decisions given energy prices, the IMF explained.

He therefore spoke of a “two-part” outlook in his report. "The global economy has proven resilient, but that resilience is under pressure and the risks to growth are tilted to the downside," said IMF Chief Economist Silvana Tenreyro.